Moody's downgrades Georgia Perimeter

Moody's Investors Service downgraded Georgia Perimeter College Friday and issued a negative rating outlook citing the school's significant budget shortfall and concerns over future financial challenges.

Georgia Perimeter has been overspending for the past several years and had to cut $25 million from its budget for the fiscal year that started July 1. As part of the cuts the school laid off about 9 percent of its staff.

The University System of Georgia is expected to release an audit next month about the college's finances. State auditors have also started analyzing the college and that report is expected mid-October.